tuesday brainstorming

1. Markets are within the process to confirm the top as the NQ made the 13 count and ES has it by today. Sentiment has improved to the bullish side with out being euphoric but very obviously some bet their house that QE3 will make their day wit the best start into January since 1987. We have at least a trading top and start with wave 1 down within this week. My target is the 1240-50 initially for the SPX – in order to get a big top we ned some roller coaster action within the 1220- 1320 zone.

excerpt

MONDAY, JANUARY 23, 2012

INVESTOR SENTIMENT READINGS

High bullish readings in the Consensus stock index or in the Market Vane stock index usually are signs of Market tops; low ones, market bottoms.

Last Week

2 Weeks Ago.

3 Weeks Ago

Consensus Index

Consensus Bullish Sentiment

69%

68%

66%

Source: Consensus Inc., P.O. Box 520526,Independence, Mo.

Historical data available at (800) 383-1441. editor@consensus-inc.com

AAII Index

Bullish

47.2%

49.1%

48.9%

Bearish

23.6

17.2

17.2

Neutral

29.2

33.7

34.0

Source: American Association of Individual Investors,

625 N. Michigan Ave., Chicago, Ill. 60611 (312) 280-0170.

Market Vane

Bullish Consensus

60%

59%

56%

Source: Market Vane, P.O. Box 90490,

Pasadena, CA 91109 (626) 395-7436.

FC Market Sentiment

Indicator

51.1%

52.8%

53.1%

Source: First Coverage 260 Franklin St., Suite 900

Boston, MA 02110-3112 (617) 303-0180. info@firstcoverage.com

FC Market Sentiment is a proprietary indicator derived from actionable sell-side trade ideas sent by the sell-side to their buy-side clients over the First Coverage platform. Over 1,000 institutional sales people at more than 250 firms participate on the First Coverage platform and have contributed hundreds of thousands of ideas since inception. Each Idea is associated with a ticker or sector and is tagged bullish or bearish by the creator. This data is aggregated at the sector, industry and market level. The FC Market Sentiment score ranges from 0-100 (0=most bearish, 50=neutral, and 100=most bullish) and represents a completely objective, real-time view into what advice the sell-side is providing to their buy-side clients